While I generally focus on Brooklyn, it’s always good to keep an eye on Manhattan. After all, no matter how many articles you read about how much Brooklyn has arrived, Manhattan is still NYC anchor, and while Brooklyn real estate may be the first choice for some, there are others who are choosing it because they can’t afford Manhattan.
Recently Corcoran released their Q3 report, and it showed some interesting trends:
- sales remain high, Q3 2014 posted the second highest number of sales in the past five years.
- still tight inventory, especially in the “affordable” market.
- only 6% of sales were new development, a remarkably low number- likely due to most new developments still being under construction.
- average price per square foot continues to climb, up 12% annually, now at $1,300+p/sf.
- resales performed well average ppsf for coops up 12% and 7% for condos. However, both were dramatically eclipsed by new development which posted an increase of 30%
Clients are often surprised by these metrics, especially the condo vs. coop appreciation for price per square foot. They get use to Brooklyn and think Brooklyn is already expensive, they’re flabbergasted that the average price per square foot in Manhattan is $1,300+. Still, it’s worthwhile to keep in mind this is average, not the median, so a couple high priced listings (which Manhattan has plenty of) will skew these numbers up.
Manhattan real estate growth can be summarized by New Developments. There are some very sticker-shocking new developments coming down the pipe. A couple of the new ones that have gotten a lot of press:
- 225 West 57th Street (Nordstrom Tower)
- One 57
- 220 Central Park South
- 157 West 57th Street
- 111 West 57th Street
- 53 West 53rd Street
- 520 Park Avenue
- 432 Park Avenue
57th Street is becoming so populated by the uber rich that it’s become known as billionaire’s row.